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Logan Group, a Shenzhen-based developer, has secured full bondholder approval for a comprehensive debt restructuring. This covers 21 onshore corporate bonds and asset-backed securities issued by its unit. The move comes amidst a prolonged liquidity crisis affecting many Chinese property developers. The restructuring offers bondholders options like asset conversions or cash repurchase. This approval could set a precedent for other struggling developers in China's real estate market as they navigate ongoing challenges.
Logan Group, a property developer, has recently secured full approval from its bondholders for a debt restructuring plan. This decision impacts its operations in China, coming amidst a prolonged period of liquidity crisis. The company gained agreement for a comprehensive plan covering various financial instruments. Advertisement
The comprehensive debt restructuring covers 21 onshore corporate bonds and asset-backed securities issued by Logan Group's unit, Shenzhen Logan Holdings. This move comes as Logan Group has been grappling with a prolonged liquidity crisis, a common issue among Chinese property developers. This situation highlights the ongoing challenges faced by China's property sector, where many firms have been forced to restructure billions in debt.
The restructuring plan offers bondholders four choices- full conversion into designated assets, asset-for-debt swaps, cash repurchase, or equity economic rights. Logan Group will now proceed to arrange for bondholders to select their preferred restructuring options and receive allocations based on their holdings, as outlined in the bondholder meeting resolutions.
The successful approval for Logan Group's restructuring could potentially set a precedent or offer a pathway for other struggling developers in the Chinese real estate market. Debt restructuring is a common strategy for companies facing financial distress, allowing them to reorganize their obligations to improve financial health and continue operations.
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